Zero Net Energy Buildings: Global Market Scenario, Trends, Opportunity, Growth and Forecast, 2019-2029

Market Definition

Across the globe, there is consensus regarding the need to improve energy efficiency, but there is less consensus regarding what precisely qualifies as a zero net energy building (ZNEB). The most widely accepted idea is that ZNE structures generate as much energy locally as they consume annually. They need energy from the grid in order to function, but they can offset that need with energy they generate on-site, thus they are net zero. This involves either drawing power from the grid or returning some of it in some situations. In the end, the energy used and returned have a net annual effect of zero.

Market Insights

The global Zero Net Energy Building (ZNEB) market stood at $35.1 billion in 2021 and anticipated to grow at a CAGR of more than 17% during 2022-2029. Currently, NZE building only makes up a small portion of the worldwide construction market. Less than 1% of the world’s buildings are currently found there. However, there are a tonne of investment prospects in the NZE building industry. With about 50% of the revenue generated by market participation in 2021, the Americas (both North and Latin America) is dominating the global market, followed by Asia-Pacific. Due to the building boom in China and other nations, Asia-Pacific is anticipated to have the fastest growth rate.

Buildings and building construction accounted for 30% of the overall worldwide energy consumption in 2021 and 27% of all emissions from the energy sector, according to the International Energy Agency (IEA). Fossil fuel use in buildings accounted for about 8% of emissions, and electricity and heat production for use in buildings accounted for 19%. Because of the rise in global floor area (the area occupied by buildings), the rising demand for electricity in developing nations, and the rising use of electrical appliances like air conditioners there, among other factors, the demand for energy in the building and construction sector is anticipated to rise.

ZNE buildings are primarily motivated by energy efficiency. The first step towards reaching NZE construction is reducing energy usage. This is accomplished using energy-saving techniques already on the market, such as better insulation, high-performance windows, energy-efficient lighting, and HVAC. For instance, the industry offers technology like energy-efficient air conditioners and heat pumps at reasonable rates. Additionally, NZE buildings will all use energy-saving measures that should raise productivity by improving building systems and lowering energy losses. Advanced building automation systems, for instance, can ensure that energy is used more effectively and efficiently. When compared to conventional buildings, this may result in lower operational expenses. Low energy expenses will result from the need for less energy to operate. Additionally, less maintenance is frequently needed for buildings that use less energy, which lowers operating expenses.

Market Dynamics: Drivers

Paris Agreement

A major force behind the growth of NZE building globally is the Paris Agreement. More and more nations, towns, and businesses have made the goal of having net zero emissions by 2050. Approximately 70 nations have established a goal to achieve net zero emissions, according to the UN. Developed nations like the U.S., Europe, and China are also included on the list; these nations account for more than 70% of the world’s carbon emissions. The U.K. and other nations have pledged to accomplish this goal by the year 2030. More than 3,000 financial institutions and companies operating within the nations are reducing emissions by using science-based target initiatives (SBTI). Additionally, more than 1,000 towns and academic institutions have made a commitment to cut their carbon emissions in half by 2030.

Market Dynamics: Challenges

High Cost

NZE structures are gradually gaining recognition on a global scale because they will aid in achieving the long-term goal of energy reduction. As a result, nations have established net zero standards for both residential and commercial structures. The greater upfront costs involved with designing, building, and installing energy-efficient and renewable energy systems, however, is one of the main difficulties with NZE construction. This is particularly true for upgrading older buildings, which may necessitate substantial investments in new heating and cooling equipment as well as renewable energy systems. Building owners have found it difficult to determine how to construct their structures in a cost-effective way due to a lack of information on life cycle costs. A thorough understanding of whether the cost to develop ZNEB is greater due to design or construction is still lacking.

Market Segmentation

• Based on Project Type, the Global Zero Net Energy Buildings market is segmented into
  • New Construction
  • Renovation
• Based on Product/Service Type, the Global Zero Net Energy Buildings market is segmented into
  • Construction
  • Design & Consulting
  • Building Material
  • HVAC
  • Lighting Solutions
• Based on Geography, the Global Zero Net Energy Buildings market is segmented into
  • Asia-Pacific
  • North America
  • Europe
  • Latin America
  • Middle East & Africa

• All market revenue has been given in US Dollar.

Historical Year: 2019-2020

Base Year: 2021

Estimated: 2022

Forecast- 2023-2029

Key Questions this Study will Answer

• What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Market Size-By Volume, Forecast Numbers, Market Segmentation, Market Shares) of Global Zero Net Energy Buildings Market?
• What is the region wise industry size, growth drivers and challenges key market trends?
• What are the key innovations, opportunities, current and future trends and regulations in the Global Zero Net Energy Buildings Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in Global Zero Net Energy Buildings Market based on competitive benchmarking matrix?

What are the key results derived from the market surveys conducted during Global Zero Net Energy Buildings Market study?